North Carolina Down Payment Assistance Programs

Payments Gateway - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These systems would be the Mortgage Credit Certificate as well as the Down Payment Assistance System.

Should you qualify for one of these programs and you purchase a house between December 1, 2009 and January 1, 2009, it is also possible to be eligible for the $8,000 tax credit just enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the previous three years. That is exactly the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction.

Should you are eligible for the MCC, you are able to claim 20% of the interest you pay as a credit in your federal income taxes. You are able to save up to .

If you do qualify for the MCC, for 2009, you may have the ability to join this with the $8,000 tax credit. This would reduce the tax liability of a buyer's by $10,000.

Who qualifies for an MCC is based on your income along with the cost of the property you're buying. Household income means the “gross income of the mortgagor and every other person anticipated to live in the dwelling who is 18 years of age or older.”

The income and house price limits Durham and Chatham Counties are given below.

MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing Home $210,000

The buyer only has to pay and the load would pay around .

This program has stricter income limitations than the MCC plan outlined above. Like the MCC program, it may be used in conjunction with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nevertheless, can not be utilized in combination together with the MCC. It is an either or situation.

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing House $210,000